Indian stock markets closed sharply lower on Monday as rising Brent crude prices amid the US-Iran conflict triggered heavy selling across sectors, erasing nearly Rs 12 lakh crore in investor wealth.
Mumbai : Indian benchmark equity indices ended sharply lower on Monday, although they managed to recover part of their intraday losses by the close as Brent crude prices eased slightly from their day’s peak amid the ongoing tensions between the United States and Iran. The volatility in global energy markets weighed heavily on investor sentiment, triggering broad-based selling across most sectors and wiping out nearly Rs 12 lakh crore of investor wealth during the session.
The Nifty50 closed the day at 24,028.05, down 422.40 points or 1.73 per cent, while the Sensex settled at 77,566.16, declining 1,352.74 points or 1.71 per cent. Despite the sharp fall, both indices trimmed a portion of their losses in the latter half of the trading session as oil prices cooled slightly from the day’s highs.
During intraday trading, the Nifty50 had plunged to a low of 23,868.05 before recovering around 160 points by the closing bell. The Sensex also rebounded significantly from its day’s low of 76,424.55, trimming losses by about 1,142 points. Market participants remained cautious as geopolitical tensions pushed crude prices higher, raising concerns about inflationary pressures and economic stability.
The recent slide has also pushed the Nifty50 into the technical correction zone. The index has now declined more than 10 per cent from its record high of 26,373, which it had touched on January 5 this year. Analysts say such corrections often reflect heightened global uncertainty and risk aversion among investors.
Global crude oil prices remained a key driver of market sentiment throughout the day. Brent crude futures were trading about 12.59 per cent higher at $104.35 per barrel, although the price had earlier surged to nearly $120 per barrel before easing slightly. The sharp rise in oil prices raised concerns about India’s import bill and inflation outlook, given the country’s heavy dependence on crude imports.
Broader markets underperformed the benchmark indices, indicating deeper weakness beyond the frontline stocks. The Nifty MidCap index ended the session down 1.97 per cent, while the Nifty SmallCap index fell even further, losing 2.22 per cent by the close.
Sector-wise, banking stocks bore the brunt of the selling pressure. The Nifty PSU Bank index emerged as the worst performer of the day, ending 3.97 per cent lower. Private banking stocks also faced heavy selling, with the Nifty Private Bank index dropping 3.41 per cent. Other cyclical sectors were also hit hard, with the Nifty Auto index falling 3.98 per cent and the Nifty Metal index declining 3.39 per cent.
However, the information technology sector showed relative resilience amid the broader market weakness. The Nifty IT index managed to remain in positive territory, inching up 0.08 per cent to close at 30,162.05, making it the only major sectoral index to end the session in the green.
Market experts believe that volatility may persist in the near term as investors closely monitor geopolitical developments and movements in crude oil prices, both of which have the potential to influence inflation expectations, interest rate outlook and overall market sentiment.
Mumbai : Indian benchmark equity indices ended sharply lower on Monday, although they managed to recover part of their intraday losses by the close as Brent crude prices eased slightly from their day’s peak amid the ongoing tensions between the United States and Iran. The volatility in global energy markets weighed heavily on investor sentiment, triggering broad-based selling across most sectors and wiping out nearly Rs 12 lakh crore of investor wealth during the session.
The Nifty50 closed the day at 24,028.05, down 422.40 points or 1.73 per cent, while the Sensex settled at 77,566.16, declining 1,352.74 points or 1.71 per cent. Despite the sharp fall, both indices trimmed a portion of their losses in the latter half of the trading session as oil prices cooled slightly from the day’s highs.
During intraday trading, the Nifty50 had plunged to a low of 23,868.05 before recovering around 160 points by the closing bell. The Sensex also rebounded significantly from its day’s low of 76,424.55, trimming losses by about 1,142 points. Market participants remained cautious as geopolitical tensions pushed crude prices higher, raising concerns about inflationary pressures and economic stability.
The recent slide has also pushed the Nifty50 into the technical correction zone. The index has now declined more than 10 per cent from its record high of 26,373, which it had touched on January 5 this year. Analysts say such corrections often reflect heightened global uncertainty and risk aversion among investors.
Global crude oil prices remained a key driver of market sentiment throughout the day. Brent crude futures were trading about 12.59 per cent higher at $104.35 per barrel, although the price had earlier surged to nearly $120 per barrel before easing slightly. The sharp rise in oil prices raised concerns about India’s import bill and inflation outlook, given the country’s heavy dependence on crude imports.
Broader markets underperformed the benchmark indices, indicating deeper weakness beyond the frontline stocks. The Nifty MidCap index ended the session down 1.97 per cent, while the Nifty SmallCap index fell even further, losing 2.22 per cent by the close.
Sector-wise, banking stocks bore the brunt of the selling pressure. The Nifty PSU Bank index emerged as the worst performer of the day, ending 3.97 per cent lower. Private banking stocks also faced heavy selling, with the Nifty Private Bank index dropping 3.41 per cent. Other cyclical sectors were also hit hard, with the Nifty Auto index falling 3.98 per cent and the Nifty Metal index declining 3.39 per cent.
However, the information technology sector showed relative resilience amid the broader market weakness. The Nifty IT index managed to remain in positive territory, inching up 0.08 per cent to close at 30,162.05, making it the only major sectoral index to end the session in the green.
Market experts believe that volatility may persist in the near term as investors closely monitor geopolitical developments and movements in crude oil prices, both of which have the potential to influence inflation expectations, interest rate outlook and overall market sentiment.
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